Buying Property in Dubai
It's impossible to ignore the fact that Dubai has now emerged onto the property scene. In the next five years the city-state of Dubai will become one of the largest construction sites in the Middle East . There are plans to build the largest skyscraper in the world, the Burj Dubai, along with golf courses, hotels, apartment blocks, water-parks, cinemas, sports complexes and marinas. Dubai is the only place in the Gulf where freehold property can be purchased. By 2008 it is predicted that there will be 200 new skyscrapers and 250,000 new homes built in Dubai. Once famous for its pearls, Dubai is now emerging as one of the fastest growing tourist destinations in the world.
The Man behind the Plan
Sheikh Mohammed bin Rashid Al Maktoum is the Crown Prince of Dubai. He opened the gates for foreign nationals to purchase freehold property in Dubai, making it the only region in the Gulf where property can be owned by westerners. Oil, which was discovered in the Arab emirates in 1966, is expected to run out in the next 20 years and Sheik Mohammed has decided to re-invent the country as a leading tourist resort.
Shortage of Beachfront
Dubai has a shortage of beachfront and, in order to circumvent this problem, man-made islands in the shape of palm trees are being built, which will extend beachfront property. The construction of the two Palms to ground level will cost in the region of £2billion per Palm. The plans for each of these man-made islands include 2,400 proposed shoreline apartments and villas, 40 hotels, marinas, restaurants and cinemas. There are further plans to build yet more artificial islands in the shape of the globe.
Overview of Dubai 's Property Investment Potential
Dubai offers some of the best value in terms of specification and square footage in the overseas property market. Build quality is good, apartments are spacious and all developments come with free gyms and swimming pools. Petrol is cheap and the economy is stable. In fact the future looks positively rosy for the property investor to buy in Dubai . However no one can predict future rental yields and re-sale values, as the extent of the new build programme is vast and the tourist trade is still in its infancy.
Shopping is limited, the weather is unbearably hot during the peak summer months and Dubai has little to offer (as yet) in the way of culture. It is also hardly on the doorstep, making a quick hop for a weekend in the sun unviable. Another drawback could be regime change. If the Crown Prince is removed from power, then the new laws that he has pushed through allowing non nationals to purchase freehold property could be revoked and westerners may find themselves ousted from their properties with no compensation. It's a gamble, but the pickings could be rich for those brave enough to purchase early in a good development in the right location.
